Choose the most correct statement or the best combination of statements as indicated in the options that follow the statements.

Question

A. After the process of winding-up is complete, CIPC records that the company has been dissolved and publishes a notice to this effect the company ceases to exist.

B. Sequestration of a debtor's estate imposes on him only financial restrictions regarding his estate.

C. Both solvent and insolvent companies can be wound-up.

D. An insolvent who commits an offence can be imprisoned between three and five years without the option of a fine.

E. The South African Law Reform Commission proposed consolidating all insolvency laws into one enactment.


Statements B and D are correct.


Statements C and D are correct.


Statements A, C and E are correct.


All the statements are incorrect.


Statements A, B, and D are correct.

Answer 1

To determine the most correct statement or best combination of statements, let's analyze each statement provided:

A. Correct: After the process of winding up is complete, the company is indeed dissolved and ceases to exist, and the CIPC (Companies and Intellectual Property Commission) publishes a notice of this dissolution.

B. Incorrect: Sequestration of a debtor's estate not only imposes financial restrictions but can also affect their rights and capabilities significantly beyond financial restrictions.

C. Correct: Both solvent and insolvent companies can be wound up under certain circumstances, though the processes may differ based on their solvency status.

D. Incorrect: The penalties for an insolvent person who commits an offence can vary. The statement may not accurately depict the penalties under South African law.

E. Correct: The South African Law Reform Commission has indeed proposed to consolidate all insolvency laws into a single enactment.

Based on the evaluations:

• Statements A, C, and E are correct.
• Statements B and D are incorrect.

Therefore, the best combination of correct statements is:

Statements A, C, and E are correct.